Quote Originally Posted by ChunkyMonkey View Post
I disagree and agree. Junk MBS are on their way out if not out already. However, we are in 'fair market price range' right now, the Fed/Obama Administration is about to inflate the housing price again... In the next bubble housing market burst, banks won't lose money - the taxpayers will!

Fed/Obama have been busy trying to keep the housing bubble inflated since it started deflating. Passes on paying, readjustment of terms for loans, pressure to start loaning again when banks in no way should have, you name it, they've tried it, except for this.

We're still a significant (double digit %) ways above what fair market prices would be. This will push them higher, and like all bubbles will eventually burst - leaving taxpayers with another $trillion+ loss. I think the hope is just it'll burst some time after Obama leaves office. Then it's the other guy's fault, whoever that ends up being.